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Debtor's Prison For Medical Debt

How did breast cancer survivor Lisa Lindsay end up behind bars? She didn't pay a medical bill -- one the Herrin, Ill., teaching assistant was told she didn't owe. "She got a $280 medical bill in error and was told she didn't have to pay it," The Associated Press reports. "But the bill was turned over to a collection agency, and eventually state troopers showed up at her home and took her to jail in handcuffs."

Wow, are you serious? I do not understand how this could happen if it was abolished by Federal decree in the 1830s. So, I did a quick Google and came up with even more occurances of debtors being jailed. WhyChat I that this is your field of mastery... so what can/could be done if one found themselves faced with these types problems?

What exactly is the thought process? Someone doesn't have the money to pay something so throwing them in jail will change that? If you have two insurances and their billed in the wrong order ( Secondary insurance then primary ) the insurance companies won't cover it and the bill becomes yours... then you go to jail for the mistake of the billing department?

Yes, I agree haru. I guess that throwing a debtor behind bars would get the debt paid. Ridiculous! From reading over several articles, I have found that these types of practices have really picked-up in 2010. Are these the new strategies that collections agencies are using to get bad debt paid? Most importantly, if they call threatening to have you incarcerated is this now an acceptable form of pursing bad debt? Also how does FDCRA and SOL play in these scenarios? Is it still safe to say that if the debt is past SOL that you are free and clear? Wow, This is a topic that needs immediate attention. Hopefully some of the seasoned CBers will give some advice soon.

Oh, so this is how they have found a loop-hole. Wow! Okay, so if the CA goes to a judge and get an order to appear in court would it be in the debtor's jurisdiction or could it be far away? Also, who would responsible for notifying the debtor that they must appear in court?

My reasoning for asking is because a relative were ordered to appear in court, but it was not the responsibility of the court to notify, it was the creditor's responsibility. Thus, she was never notified of the court date and an Order of Judgment was placed against her. Now suppose this was a summons to appear in court, she would have a warrant for her arrest for a no-show and would have been locked up. Wow.

You would think a default judgement would be enough for FTA. Seems a bit archaic.

No, in that situation, you just lose by default, and the CA gets a default judgment. After they get the judgment, they have to figure out a way to get the money from you. They file for a type of "discovery" or "interrogatories" where you are supposed to show up at the courthouse; they meet with you in a private room, not the courtroom itself, and they ask you - under oath - about your bank accounts, employment, income, other assets. You have to tell the truth, because it is, technically, court, and you are facing perjury if you lie and get caught.

Most people do not understand how this works, and if they are scared, they don't show up. Many courts do not allow arrests in these cases, but some courts do. Some of the judges in those courts are former creditor's lawyers, or they are long golfing/drinking buddies with the lawyers, and are not impartial. Many of the are cases of "sewer service" - the person never knew they had been sued or ordered to appear for the debtor's exam. Illinois is a bad one - they cater to the collectors, especially the ones who have based their businesses there.

The thing, as WC says, is to head them off at the pass, and don't let it get that far. In the event it does for some reason, do not ever ignore court documents or orders.

If someone gets arrested like this and they were never served, that's whole other thing. Their civil rights were violated.

You would think a default judgement would be enough for FTA. Seems a bit archaic.

No, in that situation, you just lose by default, and the CA gets a default judgment. After they get the judgment, they have to figure out a way to get the money from you. They file for a type of "discovery" or "interrogatories" where you are supposed to show up at the courthouse; they meet with you in a private room, not the courtroom itself, and they ask you - under oath - about your bank accounts, employment, income, other assets. You have to tell the truth, because it is, technically, court, and you are facing perjury if you lie and get caught.

Most people do not understand how this works, and if they are scared, they don't show up. Many courts do not allow arrests in these cases, but some courts do. Some of the judges in those courts are former creditor's lawyers, or they are long golfing/drinking buddies with the lawyers, and are not impartial. Many of the are cases of "sewer service" - the person never knew they had been sued or ordered to appear for the debtor's exam. Illinois is a bad one - they cater to the collectors, especially the ones who have based their businesses there.

The thing, as WC says, is to head them off at the pass, and don't let it get that far. In the event it does for some reason, do not ever ignore court documents or orders.

If someone gets arrested like this and they were never served, that's whole other thing. Their civil rights were violated.

Yes, I agree completely. It's best for consumers to fight to the bitter end, taking advantage of all the rights afforded to them. Burying one's head in the sand won't solve anything, I would never FTA. My main concern would be people being thrown in jail when they were never notified of the proceedings, this seems ripe for abuse.